Tata Power ties up financing for 25MW solar project in Mithapur, Gujarat

MUMBAI, INDIA: Tata Power, India's largest private power company, which is developing a 25 MW solar photovoltaic power project at Mithapur, Gujarat, under the state’s Solar Power Policy 2009, through its subsidiary, Tata Power Renewable Energy, announced the completion of the signing of financing agreements.

Tata Power Renewable Energy has successfully tied up the entire debt requirement through a consortium of domestic lenders, namely State Bank of India and Export Import Bank of India with SBI Capital Markets acting as the sole financial advisor and arranger. The signing of financing agreements was completed on December 2, 2011. The company completed pre-disbursement conditions under the financing agreements for availing interim disbursement and received the first loan disbursement on December 8, 2011.

The project of approximately Rs. 365 crore is being funded through a debt-equity mix of 70:30. The project financing comprises equity of Rs. 110 crore and rupee term loans of Rs. 255 crore.

Spread over 100 acres of land, the solar plant will be located along the coast of Gujarat. Crystalline silicon photo-voltaic technology, which is modular, proven, and widely deployed, is the choice of technology for this project. The company has signed a power purchase agreement for the project with Gujarat Urja Vikas Nigam. This plant is likely to be one of the largest of its kind in the country and will be ready to inject power into the system by end-December 2011.

The company’s strategy emphasises the development of clean energy generation from renewable sources to balance the carbon emissions from fossil fuel-based generation capacity while contributing towards energy security of the country.

Anil Sardana, MD, Tata Power, said: “We would like to thank the Government of Gujarat for the support extended for setting up this solar power project at Mithapur. The signing of the financing agreements is a significant milestone for the project, and we take this opportunity to thank our investors who have once again shown faith in Tata Power. We look forward to participating in many such initiatives in solar power.”

The company has also executed a 3MW solar photovoltaic plant at Mulshi, one of the largest grid-connected solar projects in Maharashtra and had set up its first solar power plant of 100kW, way back in 1996 at Walwhan in Lonavla.